Overview
- Conestoga reported its Small Cap Strategy returned -1.89% net in Q4 2025, trailing the Russell 2000 Growth Index’s 1.22% gain.
- Conestoga disclosed portfolio changes including selling Trex and Generac in Q4 and exiting Mesa Laboratories due to rising competition, demand normalization with inventory overhang, margin pressure, and reduced long‑term conviction.
- CoStar shares faced pressure from heavy Homes.com investment that weighed on profitability, with sentiment further hit by media reports suggesting Google may enter for‑sale home listings.
- Stock‑level detractors included Construction Partners after an EPS miss, Veeva on a rotation out of higher‑valuation software, and Bentley Systems on slower growth and higher investment.
- Winners cited across strategies included Alphabet for AI‑driven strength, Novanta on Advanced Surgery growth and stronger bookings, Digi on faster recurring services revenue, RBC Bearings on resilient aerospace demand, West Pharmaceutical on GLP‑1‑linked momentum, and Rollins for durable, recurring growth.